Agile Therapeutics Inc (NASDAQ:AGRX) Takes a Hit

Agile Therapeutics Inc (NASDAQ:AGRX)

Agile Therapeutics Inc (NASDAQ:AGRX) shares took a hit, plummeting 27.79% after the company announced a secondary public offering. The selloff comes days after the company reported a second quarter net loss.

One month daily candlebar chart for AGRX

Stock Performance

Agile Therapeutics Inc (NASDAQ:AGRX) is a specialty pharmaceutical company focused on the development and commercialization of prescription contraceptive products for women. The company’s lead product is Twirla, which is a once weekly contraceptive patch fresh from Phase III trials. The company is also working on other contraceptives led by AG200-ER, designed to allow women increase the length of their cycle and AG200-SP designed to shorten the hormone-free interval.

The stock gapped lower in Thursday’s trading session and is a point of concern as the stock is now trading at the lower end of a $3.30 – $3.63 trading range. The stock also appears to have found support around the $3.30 a share mark, below which it could visit 2017 lows of $2 a share. Prior to the 27.79% sell off, the stock had more than doubled after reaching highs of $5.50 a share.

Public Offering

A secondary public offering appears to have been the last thing that investors were expecting if the recent sell off is anything to go by. Agile Therapeutics Inc (NASDAQ:AGRX) is planning to raise approximately $20 million before the deduction of underwriting discounts and commissions from the offering. The company has priced 5,333,334 shares of its common stock at a price of $3.75 a share. The offering will close on August 8, 2017, subject to closing conditions.

Q2 Earnings

Separately, Agile Therapeutics Inc. (NASDAQ:AGRX) reported a second quarter net loss of $7.4 million or $0.26 a share, a slight improvement from a net loss of $8.4 million reported a year earlier. Research and development expenses in the quarter dropped to $3.8 million from $5.6 million as of Q2 2016. The company attributes the decline to decrease clinical development expenses for Twirla.

During the quarter, Agile Therapeutics Inc (NASDAQ:AGRX) made a successful New Drug Application (NDA) for Twirla as an investigational low dose combined hormonal contraceptive patch.

“These accomplishments have set the stage for what we expect will be an important year for the company as we move closer to potentially commercializing our novel low-dose contraceptive patch and providing an important new contraceptive option for women,” said Al Altomari, Chairman, and CEO of Agile Therapeutics Inc (NASDAQ:AGRX).

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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